The rise in the price of palm oil supports sunflower prices
Purchase prices for sunflower in Russia are falling under the pressure of falling prices for sunflower oil and increased export duties. This improves the competitiveness of Ukrainian sellers offering cheaper sunflower oil, but increases pressure on purchase prices for sunflower. However, the resumption of palm oil price growth supports export prices for Black Sea sunflower oil.
January palm oil futures on the Malaysian stock exchange rose 1.4% to 4,966 ringgit/ton or.1,193/ton during the week based on preliminary data on an increase in exports during November 1-15 compared to the same period in October by 10-30%, but the market will react more significantly to the actual data on exports and production, which will be published this week.
On the Chinese stock exchange, palm oil futures rose 0.3% to.1,482/ton, and soybean futures rose 0.1% to. 1,490/ton.
December soybean oil futures on the Chicago Stock Exchange unexpectedly fell by 1.3% to. 1,282/ton yesterday, despite an increase in soybean processing volumes in the United States in October compared to September by 20% to 5 million tons.this is how the market reacted to an increase in soybean oil reserves to 832.6 thousand tons, while experts predicted them at 782 thousand tons.
In Ukraine, the supply prices of sunflower oil increased to 1 1400-1420/ton FOB, while demand prices remain at the level of.1380-1390/ton FOB. The market is waiting for the results of the Egyptian tender, which may provide support for prices.
Purchase prices for sunflower seeds in Ukraine last week increased by 200-400 UAH/ton to 19000-19600 UAH/Ton (7 722-745/ton with VAT) with delivery to the plant for oil content of 46-47% and a premium for the highest oil content.
The high cost of road transportation and an increase in corn supplies to ports constrains sales of sunflower by producers, which forces processors to raise purchase prices despite the negative profitability of processing in anticipation of rising prices for sunflower oil.
